Type
Closure
Country
Ireland
Region
Southern and Eastern; Dublin;
Location of affected unit(s)
Dublin
Sector
Transportation / Storage
Land, Water And Air Transportation
Land Transport And Transport Via Pipelines
49 - Land transport and transport via pipelines

350 jobs
Number of planned job losses
Job loss
Announcement Date
16 February 2007
Employment effect (start)
Foreseen end date
28 February 2007

Description

A Dublin distributor of chilled and frozen foods closed at the end of February with the loss of 350 jobs. Whelan Frozen Foods has been storing and distributing food for the Dunnes Stores group for the past 26 years but finished working for the company on 28 February 2007. Dunnes Stores was always the only client of the family-owned warehouse and distribution firm but the business has now been moved by Dunnes to a number of other suppliers.

The employees at operation have been informed of the pending closure. There is no sign of the company securing any replacement customers. A significant number of those set to lose their jobs are understood to be non-English-speaking foreign nationals who work as drivers and general operatives.

Whelans' multimillion euro business with Dunnes was the focus of a bitter High Court clash last year. The case was eventually settled. The origin of the dispute was an effort by Dunnes to squeeze greater efficiencies from Whelans by reducing its profit margin. The company was set up to supply Dunnes and terms and margins were agreed verbally between the two sides. When Dunnes sought to impose a lower profit margin, Whelans went to court complaining that it had been given insufficient notice. The higher margins were reimposed after an injunction was sought pending the hearing of the case.


Sources

  • 17 February 2007: The Irish Times

Citation

Eurofound (2007), Whelan Frozen Foods, Closure in Ireland, factsheet number 65017, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/65017.